Staffordshire-based, JSW Insurance, has teamed-up with industry giant AXA Insurance to offer directors specially-tailored cover, designed to give peace of mind in uncertain economic times.

JSW is giving decision makers in firms of all sizes the chance to protect their firms and themselves against potentially crippling legal action.

Today's proliferation of "no win, no fee" legal services means that the UK has never been more litigious. Every decision taken by a director potentially leaves him or her open to expensive claims and legal costs.

Nathan Walton, JSW Insurance Managing Director, explains:

"In the current, difficult trading climate, tough decisions will need to be made by Directors to ensure their company's operational costs are reduced to protect profits."

"This situation has increased the likelihood of firms being on the receiving end of employment tribunals from displaced employees - however, that is only one of numerous very real threats, against which companies need to protect themselves," added Mr Walton.

JSW's decision to offer this insurance comes as a result of the current confusion over the adequacy of the protection offered by some specific insurance solutions, such as D&O policies, or through trade body schemes.  

Subsequently, in the event of legal action - whether that takes the form of an employee claim or an Health & Safety Executive or Environmental Protection Agency investigation - a firm and its directors could suffer financial penalties or have awards made against them. This could threaten business profits and even their personal assets.

Mr Walton said the JSW's new comprehensive management liability solution is being sold to businesses using a simple "quotation and buy" tool.

"In our experience of helping clients to manage the risks and liabilities of their businesses, we have identified the real threats faced due to inadequate management liability provision in the UK insurance market," said Mr Walton.

"We have partnered with AXA Insurance as the structure of its management liability policy offers the complete solution, which we have been looking for, to ensure complete peace of mind and reassurance that profits and personal assets are no longer at risk from legal action - should it ever arise."

Features of the policy, underwritten by AXA, include: cover for legal costs and awards, the costs of regulatory claims and investigations, and free advice through a legal, employment and regulatory helpline. What's more, there is no limit to the number of claims that can be made.

Callum Taylor, Head of Management Liability at AXA Insurance, was pleased with this new partnership:

"SMEs face many new risks, and we are delighted to be able to offer our customers access to expertise and protection when they need it most."